Structure of Indian Capital Market with Diagram
Broadly speaking the blogspot.com//search?q=what-is-capital-market-meaning">capital market is classified inwards to 2 categories. They are the Primary marketplace (New Issues Market) together with the Secondary marketplace (Old (Existing) Issues Market). This classification is done on the footing of the nature of the musical instrument brought inwards the market. However on the footing of the types of institutions involved inwards upper-case missive of the alphabet market, it tin hand the axe last classified into diverse categories such equally the Government Securities marketplace or Gilt-edged market, Industrial Securities market, Development Financial Institutions (DFIs) together with Financial intermediaries. All of these components cause got specific features to mention. The construction of the Indian upper-case missive of the alphabet marketplace has its distinct features. These dissimilar segments of the upper-case missive of the alphabet marketplace assist to prepare the establishment of upper-case missive of the alphabet marketplace inwards many dimensions. The master copy marketplace helps to heighten fresh upper-case missive of the alphabet inwards the market. In the secondary market, the buying together with selling (trading) of upper-case missive of the alphabet marketplace instruments takes place. The next nautical chart volition assist us inwards agreement the organizational construction of the Indian Capital market.
- Government Securities Market : This is too known equally the Gilt-edged market. This refers to the marketplace for authorities together with semi-government securities backed past times the Reserve Bank of Republic of Republic of India (blogspot.com//search?q=what-is-capital-market-meaning" rel="nofollow" target="_blank">RBI).
- Industrial Securities Market : This is a marketplace for industrial securities i.e. marketplace for shares together with debentures of the existing together with novel corporate firms. Buying together with selling of such instruments cause got house inwards this market. This marketplace is farther classified into 2 types such equally the New Issues Market (Primary) together with the Old (Existing) Issues Market (secondary). In master copy marketplace fresh upper-case missive of the alphabet is raised past times companies past times issuing novel shares, bonds, units of usual funds together with debentures. However inwards the secondary marketplace already existing i.e one-time shares together with debentures are traded. This trading takes house through the registered stock exchanges. In Republic of Republic of India nosotros cause got iii prominent stock exchanges. They are the Mumbai Stock Exchange (BSE), the National Stock Exchange (NSE) together with Over The Counter Exchange of Republic of Republic of India (OTCEI).
- Development Financial Institutions (DFIs) : This is soundless around other of import segment of Indian upper-case missive of the alphabet market. This comprises diverse fiscal institutions. These tin hand the axe last particular purpose institutions similar IFCI, ICICI, SFCs, IDBI, IIBI, UTI, etc. These fiscal institutions render long term finance for those purposes for which they are laid up.
- Financial Intermediaries : The quaternary of import segment of the Indian upper-case missive of the alphabet marketplace is the fiscal intermediaries. This comprises diverse merchant banking institutions, usual funds, leasing finance companies, venture upper-case missive of the alphabet companies together with other fiscal institutions.
SEBI Regulates Indian Capital Market
For the polish performance of the upper-case missive of the alphabet marketplace a proper coordination with inwards a higher house organizations together with segments is a prerequisite. In gild to regulate, promote together with straight the progress of the Indian Capital Market, the authorities has fix 'Securities together with Exchange Board of India' (SEBI). SEBI is the supreme authorization governing together with regulating the Capital Market of India.
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